Bipartisan legislation to address the rising concerns with cybersecurity in the insurance industry has now been signed into law as Wisconsin Act 73.
PIA helped in crafting this law for Wisconsin from the NAIC model that has been passed in over a dozen other states, with many on track to follow. This law will help protect consumer data and establish trust in the insurance industry by creating reasonable standards for cybersecurity.
Wisconsin Act 73:
- Establishes the Office of the Commissioner of Insurance as the regulating entity for cybersecurity, maintaining state control.
- Sets cybersecurity standards, reporting requirements and best practices for the insurance industry.
- Exempts insurance entities with 50 employees or less, saving significant expense for small businesses.
PIA recognizes the rising concerns surrounding cybersecurity and has worked alongside legislators and other stakeholders to ensure that reasonable standards with exemptions are passed so that regulation will remain with the state and is not taken over by a federal entity.
As consumers’ connection to the insurance industry, independent insurance agents are integral to their confidence in the industry. Since cybersecurity is a threat to confidence in the industry, agents must be part of the solution. PIA encourages all members to utilize the new law as a guide to review their own data security practices and take precautions to protect themselves and their clients, even if they are exempt from reporting to OCI under the new law.